Daily News

March 22, 2010 - As a mall number of strategist looked to take profits from their Gold investments April gold futures contract in New York settled down $19.90 at $1,107.60 an ounce. A strong dollar, India's interest rate hike and a failure by the April contract to break through resistance around the $1130 all added in pushing gold lower Friday.

Sterling Smith, market analyst with Country Hedging, Inc., said India and the dollar were the driving factors. Gold investments had been able to hold off the dollar's recent strength, but the combination of factors weighed on prices. India's rate hike put "a bucket of sand on the fire..." Smith said.

Smith said the bullish charts had started to form some momentum, but hit resistance around the $1,130 level in the April contract, a point where it stalled earlier. "The trouble began when it did not push through it," he said.

There was also lingering uncertainty over the Greek financial crisis, but Friday's moves may have been exaggerated because of thin trading conditions. The currency market has had a tough time finding direction with the bearishness of the Greek financial crisis and the bullish factors surrounding Chinese-U.S. relations.

“On Friday, the Greek concerns translated into a reduced risk factor for the dollar and Euro weakness, which undercut gold”, said James Steel, precious metals analyst with HSBC in New York We could be seeing a short term correction in pricing and consolidation before the next Bull Run towards $1500.

For more information on Gold investments, contact one of our friendly Gold Experts.

Daily Updates Archive

Stewart Lawson

Senior Staff Writer - Gold-Investment.info